NuCO2 Inc., the largest supplier in the U.S. of bulk CO2 systems and services for carbonating fountain beverages, today reported operating results for the quarter ended March 31, 2007 - the first quarter since the Company began transitioning to its new strategic growth plan focused on improving returns and cash generation.
The Company noted that important progress is being achieved, particularly in the areas of customer quality, asset utilization, operating productivity and cost reductions. $quot;The quarter fully met our expectations in successful operational conversion to the new plan and we expect the full benefits of our cash generation and higher investment return model to be realized in the months ahead,$quot; said Michael E. DeDomenico, chairman and CEO. $quot;The third quarter's financial results reflect costs associated with transitioning to the new plan.$quot;
Total revenues for the quarter amounted to $31.9 million, compared with $29.2 million in the corresponding year-ago period, an increase of 9.3%, and for the nine months ended March 31, 2007 advanced 12.1%, to $96.2 million from $85.8 million in the prior year period.
EBITDA (earnings before interest, taxes, depreciation and amortization), which the Company regards as useful information as to its liquidity, excluding non-cash stock option expense, totaled $9.0 million in the third quarter, essentially even with the preceding December 2006 quarter.
Operating cash flow for the quarter totaled $9.5 million, as compared to $7.1 million in the prior year period, an increase of 34%. Operating income for the quarter amounted to $2.6 million, compared with $4.2 million in the corresponding year-ago period, reflecting continuing expenses in connection with implementing the new strategic growth plan, including acceleration of tank repair and refurbishment expense that enabled the reduction in capital costs, as well as expenses associated with the reorganization of sales staff and marketing activities. Total transition costs incurred during the quarter were $1.5 million.
Net income for the quarter amounted to $1.1 million, or $0.07 per diluted share, compared with $2.2 million, or $0.14 per diluted share a year ago, and for the nine months totaled $5.0 million, or $0.31 per diluted share, compared with $7.8 million, or $0.49 per diluted share, in the corresponding year-ago period.
$quot;Our new strategic plan that concentrates on growth in free cash and return on capital while expanding our customer base is proceeding as planned,$quot; added Mr. DeDomenico. $quot;And we continue to invest in the business, including programs which are enhancing asset utilization, driving productivity and providing superior service to our customer base.$quot;